Cosmos’s fledgling decentralized finance (DeFi) ecosystem beforehand relied on the promise of Do Kwon’s digital greenback, and the algorithm that supposedly backed it, to construct up its on-chain lending, borrowing and trade markets. When UST got here crashing down, its position was assumed by numerous totally different steady currencies – the preferred being wrapped USDC, an artificial model of the centralized USDC stablecoin issued on the Ethereum blockchain – however these alternate options didn’t provide the identical safety to customers {that a} natively issued stablecoin may.
